Security Shares Purchased Cost Hawking Inc. $44,000 900 Pavlov Co. 1,780 38,000
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During Year 1, its first year of operations, Galileo Company purchased two available-forsale investments as follows:
Please see the attachment for details:
Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $50 per share and the Pavlov Co. stock had a market value of $24 per share. Galileo Company had net income of $300,000 and paid no dividends for the year ended December 31, Year 1. All of the available-for-sale investments are classified as current assets.
a. Prepare the Current Assets section of the balance sheet presentation for the availablefor-sale investments.
b. Prepare the
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- Elston Company Balance Sheet December 31, 2004 Assets 800,000 Liabilities 100,000 Capitalstock 400,000 Retainedearnings 300,000 Totalequities 800,000 Alley Company Balance Sheet December 31, 2004 Assets 600,000 Liabilities 150,000 Capitalstock 370,000 Retainedearnings 80,000 Totalequities 600,000 Elston Co. acquires 30% interest in Alley Company on Dec 31, 2004. The carrying amount of Alley's net assers on Dec 31, 2004 approximates its fair value. If the acquisition did not result to any implied goodwill. How much is the acquisition cost of the investment?Q9 Molokomme Limited acquired all the assets and liabilities of Mashiane Limited at 1 January 2016 for R195 000. The statement of financial position for Mashiane Limited was presented as follows at acquisition date: Mashiane Limited Statement of financial position as at 1 January 2016 R'000 Assets Property, plant and equipment 70 Inventory 60 Accounts receivable 40 Total assets 170 Capital and reserves Share capital 80 Retained earnings 70 Shareholders’ equity 150 Accounts payables 20 Total equity and liabilities 170 Molokomme Limited considered the fair values of the assets and liabilities of Mashiane Limited to be equal to their carrying amounts in the statement of financial position of Mashiane Limited at that date except for property, plant…38. On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for P2,400,000). The dividends are for distribution on January 31, 2022. The company provided the following estimate of the asset’ fair value: October 1, 2021 P1,050,000 December 31, 2021 1,020,000 January 31, 2022 1,110,000 What amount will be reported in 2021 statement of profit or loss as a result of the foregoing transactions?
- S Company had the following balances at the time it was acquired by P Company:Cash P36,000Accounts receivable 457,000Inventories 120,000Property, plant and equipment 696,400Goodwill 200,000Accounts payable 350,800P Company paid P1.4M for the net assets of S Company. It was determined that fair market values of inventories and property, plant and equipment were P133,000 and P900,000, respectively.An assumed contingent liability with a fair value amounting to P20,000 and such amount is considered a reliable measurement. Also, a P50,000 future losses or reorganization/ restructuring costs are expected to be incurred as a result of the business combination.In the books of P Company, how will be the amount of Goodwill arising from business combination?Elston Company Balance Sheet December 31, 2004 Assets 800,000 Liabilities 100,000 Capitalstock 400,000 Retainedearnings 300,000 Totalequities 800,000 Alley Company Balance Sheet December 31, 2004 Assets 600,000 Liabilities 150,000 Capitalstock 370,000 Retainedearnings 80,000 Totalequities 600,000 1. If Elston Company acquired a 20% interest in Alley Company on December 31, 2004 for $130,000 and the fair value method of accounting for the investment were used, the amount of the debit to Investment in Alley Company Stock would have been $90,000. $74,000. $130,000. $120,000. 2. If Elston Company acquired a 30% interest in Alley Company on December 31, 2004 for $150,000 and the equity method of accounting for the investment were used, the amount of the debit to Investment in Alley Company Stock would have been $190,000. $150,000. $120,000. $135,000. 3. If Elston Company acquired a 20% interest in Alley Company on December 31, 2003 for $90,000 and during 2005 Barnes…M.T. Glass, Inc. purchased the following investments onJanuary 1, 2028:1. 21,000 shares (representing 42%) of AA Company stockfor $546,0002. 18,000 shares (representing 9%) of ZZ Company stockfor $306,000AA Company and ZZ Company reported the following informationfor the years 2028 and 2029:2028: AA Company ZZ CompanyNet income $140,000 $225,000Total dividends paid $ 78,000 $ 53,000Market value at Dec 31 $33 per share $22 per share2029: AA Company ZZ CompanyNet income $210,000 $280,000Total dividends paid $ 90,000 $125,000Market value at Dec 31 $35 per share $23 per shareCalculate the amount of dividend revenue shown in M.T. Glass,Inc.'s 2029 income statement for these two investments.
- M.T. Glass, Inc. purchased the following investments onJanuary 1, 2028:1. 21,000 shares (representing 42%) of AA Company stockfor $546,0002. 18,000 shares (representing 9%) of ZZ Company stockfor $306,000AA Company and ZZ Company reported the following informationfor the years 2028 and 2029:2028: AA Company ZZ CompanyNet income $140,000 $225,000Total dividends paid $ 78,000 $ 53,000Market value at Dec 31 $33 per share $22 per share2029: AA Company ZZ CompanyNet income $210,000 $280,000Total dividends paid $ 90,000 $125,000Market value at Dec 31 $35 per share $23 per shareCalculate the total investments shown in M.T. Glass, Inc.'sDecember 31, 2028 balance sheet (i.e., the balance in theInvestment in AA Company plus the balance in the Investmentin ZZ Company).On April 1, 20x8 Phar acquired 90% of the Equity Shares of Star. Star retained profits at the date of acquisition were $ 2, 640,000. Balance Sheet as at 31 March 20x9. Phar Star $000 $000 $000 $000 Non-Current Assets PPE 2,544 2,388 Intangible Software - 2,520 Investments-Equity in Star 5, 036 - Others 214 252 7,794 5,160 Current Assets Inventories 863 672 Receivables 629 394 Stars Current Account 90 - Cash 24 - 1,606 1,066 9,400 6,226 Capital and Reserves Equity shares of $1 each 2,400 1,800 Share Premium 2,400…L2-4 Awe Company pays CU500,000,000 for a 30% interest in Groy Company on July 1, 19x2 when the book value of Groy Company's net assets equals fair value. Awe Company amortizes any goodwill from this investment over 20 years. Information related to Groy Company is as follows: 31 Desember 19x1 31 Desember 19x2 Share capital, nominal IDR 1,000 Rp600.000.000 Rp600.000.000 Retained earning 400.000.000 500.000.000 Total Shareholders' Equity 1.000.000.000 1.100.000.000 Net profit earned during the year 19x2 200.000.000 Dividend for the year 19x2 (paid on March 1 of Rp. 50,000,000 and September 1 of Rp. 50,000,000) 100.000.000 Required: calculate Awe Company's revenue from Groy Company for the year 19x2
- On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P 800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000 On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000. What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?5. ABC Company purchased Tara Company for P8, 000,000 cash. Tara Company had total liabilities of P3, 000,000. ABC Company’s assessment of the fair value is obtained when it purchased Tara Company is as follows:Cash 1, 000,000Inventory 500,000In-process research and development 5, 000,000Assembled workforce 1, 200,000What is the goodwill arising from the acquisition?Vodafone Group, Plc.Consolidated Statements of Financial PositionAt March 312015 2014£m £mLong-term assets:Goodwill 22,537 23,315Other intangible assets 20,953 23,373Property, plant, and equipment 26,603 22,851 2015 2014£m £mInvestments in associates and joint ventures (3) 114Other investments 3,757 3,553Deferred tax assets 23,845 20,607Post employment benefits 169 35Trade and other receivables 4,865 3,270102,726 97,118Current assets:Inventory 482 441Taxation recoverable 575 808Trade and other receivables 8,053 8,886Other investments 3,855 4,419Cash and cash equivalents 6,882 10,134Assets held for sale — 3419,847 24,722Total assets 122,573 121,840Equity (details provided in complete statements) 67,733 71,781Long-term liabilities:Long-term borrowings 22,435 21,454Taxation liabilities — 50Deferred tax liabilities 595 747Post employment benefits 567 584Provisions 1,082 846Trade and other payables 1,264 1,33925,943 25,020Current liabilities:Short-term borrowings 12,623 7,747Taxation…